Sound and effective risk management remains an integral part of KIT’s business strategy. A robust risk management framework ensures that the Trustee‑Manager is ready to meet challenges and seize opportunities.

The Enterprise Risk Management Framework, which is a component of KIT’s System of Management Controls provides a holistic and structured approach towards assessing, monitoring and mitigating risks. The Board has in place three Risk Tolerance Guiding Principles for the Trustee‑Manager and KIT. The Risk Tolerance Guiding Principles serve to determine the nature and extent of the significant risks which the Board is willing to take in achieving its strategic objectives.

The three Risk Tolerance Guiding Principles are:

1. Risks taken should be carefully evaluated, commensurate with rewards and aligned with the Trustee‑Manager’s and KIT’s core strengths and strategic objectives.
2. No risk arising from a single area of operation, investment or undertaking should be so significant and material as to endanger the Trustee‑Manager and KIT.
3. The Trustee‑Manager does not condone safety breaches or lapses, non‑compliance with laws and regulations, and acts such as fraud, bribery and corruption.